Budget 2019: A taxing decision avoided — for now

There are lots of shiny objects in the budget; little giveaways here, reductions there and incentives sprinkled on top. Yet the most noteworthy aspect is what is not there: an increase in carbon tax.

Paschal Donohoe’s predecessor as finance minister was the gruff, plain-speaking Michael Noonan. He had a simple approach to taxation: if you want to encourage something, you reduce tax on it; and vice versa.

Ireland desperately needs to reduce the emission of greenhouse gases that are causing climate change. There are two imperatives, one moral and one economic: the first is to stop harming the planet; the second to avoid fines for breaching emissions limits.

In the run-up to the budget, the government was making the right noises. Denis Naughten, the minister…

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